After the USD/CAD pair broke below 0.9845 the market went to the downside. It reached the price level of 0.9635 testing the lower limit of the depicted bearish long-term channel which expressed a considerable bullish strength.
The USD/CAD bullish movement managed to break above the upper limit of the depicted long-term channel (0.9725) which is considered to be a bullish signal in the long term with a possible bullish 123 reversal pattern appearing on the chart targetting 0.9980.
It is important to notice that USD/CAD broke below the established ascending bottoms around 0.9797 and 0.9780. It is the way for the pair to retest the broken bearish channel and 61.8% of Fibonacci level of the newly established bullish swing around 0.9725 where price action should be watched for a valid BUY entry.
Price zone 0.9820-0.9850 is an intraday resistance zone. In order to resume the targets for the bullish patterns targeting around 0.9980 there should be a break above the intraday resistance zone.
Fixation below price level of 0.9650 invalidates the bullish scenario for the current situation.